N.Y. Probes Alleged Advantages Given to High-Speed Traders

New York Attorney General Eric Schneiderman is investigating services offered by stock exchanges that he alleges give certain high-speed investors an unfair advantage by getting early access to data feeds.

Mr. Schneiderman on Tuesday plans to urge stock exchanges to consider curbing such features and adopting proposed safeguards to ensure investors are competing on an equal playing field during a speech at New York Law School.

The features in question include “co-location,” which allow traders to locate their computer servers within the exchanges data centers, and services that provide extra network bandwidth to high-frequency traders, according to a copy of Mr. Schneiderman’s speech. Look for updates to the story here.

“These valuable advantages give high-frequency traders a leg up on the rest of the market,” Mr. Schneiderman is expected to say.

Mr. Schneiderman’s proposal is the latest in a continuing probe of Wall Street activities that allow investors and other market participants to gain a competitive edge through the early release of market-moving data, a practice he calls “insider trading 2.0.”